State finance panel recommends criteria for devolution of funds to Odisha PRIs, ULBs

Reported by Chinmaya Dehury
Bhubaneswar, Sep 26:

The fourth state finance commission headed by former bureaucrat Chinmay Basu today submitted its report to Odisha Governor SC Jamir recommending the criteria for devolution of funds to the panchayati raj institutions (PRIs) and urban local bodies (ULBs) in the state.

The recommendations of the finance commission will be in force from 2015-16 to 2019-20. The Odisha government had constituted the commission last year. The commission had got the Governor’s nod on October 31, 2013.

The commission has recommended the ways and means for devolution of resources from the state level to the PRIs and ULBs for five years commencing April 1, 2015, said government sources.

Apart from Basu, the commission consists of Adwait Kumar Mohanty, retired Professor of Economics, Utkal University, as member and Pradeep Kumar Biswal, additional secretary, finance department, as member secretary.

The recommendations are on the principles governing the distribution between state and panchayati raj institutions and the municipalities of the net proceeds of taxes, duties, tolls and fees leviable by the state and the grants in aid to the gram panchayats, panchayat samitis, zilla parishads or the municipalities from the consolidated fund of the state.

It would also suggest measures to improve the financial position of the gram panchayats, panachayat samitis, zilla parishads and municipalities.

It may be noted that  as per recommendation of the third state finance commission, the  government had provided Rs 5,048.10 crore to panchayati raj institutions and urban local bodies for five years from 2010 to 2015 as part of devolution of resources to the local bodies.